AUD/USD is moving within wave 5 (from 1.0784) of medium term downtrend - colored red in the chart. Within this wave there are four subwaves with subwave 4 from 1.0424 still developing - colored yellow in the chart.
The targets of the upmove are Fibonacci retracements of 1.0784-1.0424.
Resistances:
- 1.0562 = .382 retracement
- 1.0604 = .50 ret
- 1.0646 = .618 ret
If the downtrend resumes the immediate supports will be Fibonacci expansions off 1.1063-1.0679-1.0784.
Supports:
- 1.0400 = objective point (OP)
- 1.0163 = expanded objective point (XOP)
Overbought/Oversold
Assuming that the medium term trend is down it's preferable to try short positions when the Detrended Oscillator goes above the zero level (current prices) or gets into the overbought area (20-30 pips above the current prices).
Read more on how to apply Fibonacci studies to calculate price targets.
